Top 10 stories from MarketWatch Nov. 1 - 5

NEW YORK (MarketWatch) — Major U.S. stock indexes rose 3% and more in the latest week and the Dow Jones Industrial Average, the best known index among the public, closed above its pre-Lehman Bros. collapse for the first time in more than two years.

The Dow also extended its winning streak to six sessions, managing a modest 9 point gain after a larger-than-expected gain in nonfarm payrolls was offset by an unemployment rate that remains at 9.6%.

The broader S&P 500 Index added 3.6% on the week.

Gold futures rallied to a fresh record high Friday, settling less than $3 away from $1,400 an ounce a day after their biggest one-day gain in nearly 20 months.

Fed to buy up $600 billion in bonds

The Federal Reserve pledged on Wednesday to start a controversial new $600 billion bond-buying spree to rescue the economy from its current doldrums. The Federal Open Market Committee of the central bank said it would buy up to $600 billion in long-term Treasurys until the end of June 2011, including about $75 billion this month, in a strategy called quantitative easing. It also indicated it would spend roughly $35 billion a month reinvesting the proceeds of maturing mortgage-backed securities into government bonds. Read MarketWatch story on FOMC easing decision

Republicans add dozens of House seats, retake chamber

American voters again opted for change in Tuesday’s midterm elections, but not too much change. The Republican Party took control of the House of Representatives in Tuesday’s election, dealing a withering blow to President Barack Obama, but Democrats narrowly clung to a majority in the Senate. Republicans were projected to nab 60 seats in the House, Fox News said, easily exceeding the 39 needed to capture control of the chamber from the Democrats for the first time since 2006. Rep. John Boehner, the Ohio Republican who is likely to become Speaker of the House, said that Tuesday’s results were a repudiation of big government and sent a message to Obama. “That message is: Change course,” Boehner said. Read full MarketWatch coverage of historic election

Canada smacks down BHP bid for Potash Corp.

The Canadian government late Wednesday rejected Anglo-Australian miner BHP Billiton’s $38.6-billion bid for Potash Corp. of Saskatchewan
POT, -2.26%
. The much-anticipated decision may mark the end of BHP’s unsolicited takeover proposal, which began nearly three months ago, although the company has 30 days to appeal the decision. Industry Minister Tony Clement said the proposed transaction did not present a “net benefit” to Canada. BHP Billiton said following the announcement that it was disappointed, but it “continues to believe that the offer is of net benefit to Saskatchewan, New Brunswick and Canada.” Read full MarketWatch story on BHP/Potash positioning

Refinancing could be for you, even if you’ve only owned for a year

Low mortgage rates have some homeowners considering a refinance, even if it it’s been less than a year since they bought their home. And those who aren’t thinking about refinancing probably should consider the possibility, if they have the necessary income, credit and home equity. When it comes to refinancing, “the biggest decision is how long is it going to take to recapture [the cost],” said Cameron Findlay, chief economist for LendingTree, an online marketplace that connects consumers to lenders. “If you bought a year ago, you’re probably a good candidate.” Read MarketWatch column on wisdom of financing even year-old mortgages

Payrolls grow by 150,000 in October

The U.S. economy added jobs for the first month since May and the nation’s unemployment rate held steady at 9.6% for the third straight month, suggesting the labor market may be stabilizing. Nonfarm payrolls rose by 151,000 in October, higher than the 70,000 increase expected by economists surveyed by MarketWatch. Adding to the sense of strength in the report, the government said that job losses in August and September were not nearly as bad as previously reported. The total upward revisions added 110,000 jobs in the two months. Read about payrolls grew by 150,000 in October, on MarketWatch

What the election means for your taxes

With the Bush-era tax cuts set to expire Dec. 31, you’d expect that the first order of business for Congress after Tuesday’s election would be to deal with tax law. Yet that’s not necessarily so — the debate over making the changes may get delayed until next year. No matter how the new face of Congress affects the timing of tax-law changes, the outlook for income-tax rates on middle-income and lower-income taxpayers remains unchanged. Both Republicans and Democrats appear intent on keeping the Bush tax cuts in place for most Americans. It’s those who earn more than $200,000, or couples with more than $250,000 in income who may face changes ahead. Read MarketWatch story on what the election means for your taxes

Qantas suffers second engine problem in 2 days

A second Qantas Airways jet made an emergency landing because of an engine blowout, just hours after the airline’s chief executive defended the company’s safety and maintenance procedures on Friday. The Australian airline said a Boeing 747-400 jumbo jet bound for Sydney from Singapore experienced problems with one of its four engines soon after takeoff. Passengers said the engine caught fire, forcing pilots to dump fuel before landing, according to media reports. None of its 412 passengers was reported hurt. On Thursday, a Qantas Airbus A380 jet on the same route also experienced an engine failure, with part of the turbine disintegrating above Indonesia. Read MarketWatch story on second day of Qantas engine trouble

Whole Foods reconsiders dividend and shares jump

Whole Foods Markets Inc.
WFMI
is considering reinstating the dividend that it suspended two years ago when the upscale natural-foods grocer slammed the brakes on expansion. For the past year, Whole Foods has been gaining steady sales momentum and making its stores more profitable. It’s cut prices on certain foods and ramped up its cheaper 365 store-brand line. And more investors are becoming believers in the grocer’s turnaround. Whole Foods shares soared 15% after the news on Thursday. Read MarketWatch story on Whole Foods rally this week

Bank stocks rally on word Fed considering allowing dividend hikes

Bank stocks rallied the last two days of the week on hopes for higher dividends.The Federal Reserve is expected soon to start allowing healthy banks with strong capital levels to increase dividend payments. Regulators are expected to issue guidance outlining the standards banks must meet to increase such payments, the newspaper added. After loose mortgage lending by banks triggered the 2008 global financial crisis, regulators came down hard on the sector, limiting dividend payments. But after an unprecedented government bailout of the sector and trillions of dollars in monetary stimulus by the Fed, bank earnings rebounded sharply, helping boost capital levels. Read MarketWatch story on late-week bank rally

Google Inc. has filed a lawsuit alleging that the U.S. Interior Department shut it out of bidding for a large contract, due to a preference for Microsoft Corp.’s technology, in a move that underlines the search giant’s growing competition with Microsoft in the market for Internet-based software tools. Google argues in the complaint, filed in U.S. Court of Federal Claims, that the bid request violates the Competition in Contracting Act. Read MarketWatch report on Google suing the U.S. government

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